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What is the journal entry for recording depreciation expense?

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Question: What is the journal entry for recording depreciation expense?

Options:

  1. Debit Depreciation Expense, Credit Accumulated Depreciation
  2. Debit Accumulated Depreciation, Credit Depreciation Expense
  3. Debit Depreciation Expense, Credit Cash
  4. Debit Cash, Credit Depreciation Expense

Correct Answer: Debit Depreciation Expense, Credit Accumulated Depreciation

Solution: 

The correct entry is to debit Depreciation Expense to recognize the expense and credit Accumulated Depreciation to reduce the asset\'s book value.

What is the journal entry for recording depreciation expense?

Practice Questions

Q1
What is the journal entry for recording depreciation expense?
  1. Debit Depreciation Expense, Credit Accumulated Depreciation
  2. Debit Accumulated Depreciation, Credit Depreciation Expense
  3. Debit Depreciation Expense, Credit Cash
  4. Debit Cash, Credit Depreciation Expense

Questions & Step-by-Step Solutions

What is the journal entry for recording depreciation expense?
  • Step 1: Identify the asset that is being depreciated (e.g., equipment, vehicle).
  • Step 2: Determine the amount of depreciation expense for the period (e.g., monthly, yearly).
  • Step 3: Create a journal entry to record the depreciation.
  • Step 4: Debit the Depreciation Expense account to show that an expense has occurred.
  • Step 5: Credit the Accumulated Depreciation account to reduce the asset's book value.
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